Toll to launch Asciano following ACCC split approval

<p>Toll Holdings has been given the nod from the Australian Competition and Consumer Commission (ACCC) to split in two, under the provision the company make a &#8220clean break&#8221 of its logistics and infrastructure assets.</p> <p>The new company, Asciano &#8211 reportedly taking the name of a town an hour away from the Tuscan villa where Chris Corrigan retreated after Toll’s Patrick Corp takeover &#8211 will comprise Patrick and Pacific National and will own assets worth more than $8bn.</p> <p>Toll will not be required to meet ACCC-imposed obligations to divest its vehicle transport business and its interests in PrixCar.</p> <p>As Toll would cease to have any ownership interest in Pacific National, it would also be relieved of its obligation to divest 50% of the rail business to a third party, ACCC chairman Graeme Samuel said yesterday (Wednesday, April 18).</p> <p>&#8220When Toll first announced the restructure, the ACCC stated that it would look favourably on the waiver of the Pacific National divestment, subject to market inquiries,&#8221 Mr Samuel said.</p> <p>&#8220The ACCC’s market inquiries have revealed that the restructure of the Toll business, as proposed by Toll, would, as compared to the enforcement of the original undertakings, benefit competition.</p> <p>&#8220However, the market also strongly emphasised that the benefit would only arise if there was a complete and clean break between Toll and the new company.&#8221</p> <p>Asciano Limited, to be listed following the Toll group restructure, will comprise Patrick and Pacific National and will own assets worth more than $8bn.</p> <p>Asciano managing director and chief executive Mark Rowsthorn said the company was on its way to becoming one of Australia’s largest infrastructure funds.</p> <p>&#8220The significant scale of Asciano positions it well to venture into overseas markets and to grow its existing high quality transport infrastructure portfolio,&#8221 Mr Rowsthorn said.</p> <p>&#8220Pacific National and Patrick will continue to deliver their services and successes under the reputable brands they carry within the transport industry.&#8221</p> <p>A proposed Asciano board of directors, including a chairman and two non executive directors will be put in place in June 2007.</p> <p>Tim Poole will become chairman of Asciano in June 2007, and Peter George and Chris Barlow are the other proposed non executive directors of Asciano.</p> <br />